Tag: nature and significance of management

Questions Related to nature and significance of management

The characteristics of a scrip dividend is/are ______.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. it is in a form of a promissory note

  2. it bears interest and is accepted as a collateral security

  3. Both (a) and (b)

  4. None of these

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Correct Option: C

Dividends paid in the ordinary course of business are known as __________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. cash dividends

  2. profit dividends

  3. stock dividends

  4. property dividends

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Correct Option: B

The dividend policy affects __________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. the financial structure of corporation

  2. the flow of funds, corporate liquidity and stock prices

  3. the investor satisfaction with the return on his investment

  4. All the above

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Correct Option: D

Dividends paid from capital are known as ___________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. profit dividends

  2. cash dividends

  3. liquidation dividends

  4. property dividends

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Correct Option: C

Dividend policy is a ________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. managerial decision

  2. financing decision

  3. dividend decision

  4. subjective value

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Correct Option: B
Explanation:

Dividend policy refers to the policy that deals with the percentage of profit which are yield as dividend to the shareholders of a company which is a financial decision as it includes the finance of the company which can be retained in the company or given as dividend. 

When dividend out of stock premiums is to be declared __________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. stockholders need not be informed

  2. stockholders need not be consulted about them

  3. stockholders must be informed and consulted about them

  4. Both (a) and (b)

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Correct Option: C

Which of the following is known as the melon?

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. Cash dividend

  2. Stock dividend

  3. Scrip dividend

  4. Property dividend

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Correct Option: B

When a dividend is paid at the usual rate, it is designated as a ________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. regular dividend payment

  2. stable dividend policy

  3. extra dividend policy

  4. irregular dividend

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Correct Option: A

Corporations encourage irregular dividend payments due to

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. Unsuccessful operations

  2. Earnings are fluctuating

  3. Impossibility to pay dividend regularly

  4. All of the above

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Correct Option: D

Which of the following factors dominate the dividend policy?

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. Ownership considerations

  2. Firm-oriented considerations

  3. Both (a) and (b)

  4. Legal considerations

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Correct Option: B